The balance sheet, which reflects the financial investments, liabilities and losses of the enterprise, is the main form of reporting on issues of a financial and economic nature. There is a misconception that a loss is reflected in the asset side of the balance sheet, but in reality this type of information is reflected in the liability side. Since the concept of losses is one of the most difficult to maintain documentation, many entrepreneurs do not know how a company’s loss is shown on the balance sheet. Let's try to shed light on this issue.
Losses are considered a negative phenomenon in the development of any company or enterprise. If there are losses in the financial documentation, they must be covered by adding up previous years, remaining retained earnings, special-purpose contributions and funds in the reserve fund. An additional way to cover losses can be the use of additional capital. If the damage cannot be eliminated with a combination of the listed parameters, the balance is considered unprofitable.
The reason for the loss may be:
- The prevalence of expenses for operations not related to the sale of products and business activities
- Detection in the reporting year of errors made in previous years
- Changing approaches to accounting policies
If, based on the results of the year, a loss is identified in the accounting materials created by the accounting department, it must be reflected in documents showing the amount of outstanding losses in the analyzed year.
How the loss for the current year is shown in the balance sheet: sample
Below is shown how the current year's loss can be formed by.
LLC Assol in the analyzed year received from the sale of products excluding VAT and amounted to 560 thousand rubles, while the cost of production was 490 thousand rubles, another 90 thousand rubles were spent on related expenses. The company accrued income tax to the budget in the amount of 15 thousand rubles; special-purpose funds and reserves were not created by the company. This data is sufficient to fill out financial statements, which should reflect the following data:
- in the “Income” column – 560 thousand rubles
- in the “ ” column – 490 thousand rubles
- in the column “Profit from sales” – 70 thousand rubles (560 thousand minus 490 thousand)
- in the column “Other costs” – 90 thousand rubles
- in the column “Current tax on profit” – 15 thousand rubles
- in the column “Net profit (loss)” – 25 thousand rubles
The owners can make a decision to repay the loss, but if this does not happen, when changing the balance, an entry is made:
- 25 thousand rubles - the unrecovered loss of the year of reporting was written off
As a result, in the column reflecting the balance of “Liability” (1370), a loss in the amount of 25 thousand rubles will be visible, which is usually indicated enclosed in parentheses.
Loss through write-off
If an accountant discovers a loss at the end of the analyzed period, he must immediately inform management, who, in turn, shareholders or participants, about this in order to make an appropriate decision on this issue.
Most entrepreneurs try to cover losses (both from a financially unsuccessful year and from previous periods) with the help of undistributed profits from previous years, contributions from target participants or a reserve fund. In some cases, reserve funds are not enough to solve the problem; in this case, an uncovered loss may be left on the balance sheet. If an organization decides to post such information, it should clearly understand how the company’s loss is shown on the balance sheet and pay special attention to the size of net assets.
We monitor the real value of the organization
If, after the expiration of the financial year that occurred after the second reporting period of a year or each subsequent reporting period of a year, at the end of which it was greater than the price of net assets, in accordance with the requirements of current legislation, the company must reduce it so that it does not exceed the amount available “net” assets. You need to sign all the necessary documents and have them certified by the relevant services at most six months after the end of the unsuccessful financial year.
Loss through reduction of capital according to the Articles of Association
The capital of the organization specified in the Charter can be reduced only as a result of a resolution of a joint meeting of shareholders; this decision cannot be made by other governing and controlling bodies.
If the authorized capital in a joint-stock company becomes lower, the problem is solved by reducing the par value of the shares without changing the total number of securities of the enterprise.
In an LLC, the value (actual) of each share of capital contributed to the Charter is reduced. At the same time, the size of the shares of each participant in the organization remains unchanged.
The reduction of the authorized capital must be carried out in accordance with legal requirements, and a decision on this must be made a maximum of six months after the end of the year for which the financial statements are prepared. After the decision is publicly announced at a meeting, the body that enters legal entities into the state register must be informed about this within a maximum of three days. The tax service prepares relevant documents that serve as the legal basis for further actions by the company’s management.
In addition, the company is required to post information about the decision made a second time (with an interval of a month) in the media, which are authorized to publish information about the placement of legal entities in the register. After all formalities have been completed, a set of materials is transferred to the tax office, which includes:
- Request in writing to reduce the size of the authorized capital
- Request in writing to make adjustments to the statutory documents
- and received notarization
- Certificate of payment of state duty in the amount of 0.8 thousand rubles
- Updated constituent documents (2 copies)
After completing the formalities, the authority involved in processing the documents carries out registration within a maximum of 5 days after submitting a complete package of correctly executed documents. Capital according to the Charter can be reduced from the date of amendments to. When preparing accounting documents, including registers, the decrease should also be reflected with an entry to a given date, which will allow the company to obtain a more stable financial position.
When carrying out the above operations, the enterprise is subject to several financial obligations, including payment of information in the media and duties in favor of the state. The cost of notarization of documents is also paid by the owners of the enterprise in which losses occurred.
Expenses must be reflected in accounting carried out by the accounting department as other expenses and accrued in the form of transactions.
Tax accounting
Like other expenses of the enterprise aimed at fixing the decrease in capital specified in the Charter, tax accounting data must be taken into account when forming taxes. For this purpose, based on clause 49/1 265 of the article of the domestic Tax Code, they should be placed among other expenses not related to sales.
According to the updated Tax Code, the amounts by which the authorized capital of the company decreased in the analyzed period should not be taken into account when establishing the tax base. Accordingly, from the date of appearance in the accounting documents of data on the reduction of the authorized capital, the total number of tax liabilities of the enterprise is also reduced. It should be noted that this condition can only be met if the organization applies PBU 18/02.
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The decision on whether the loss (of the reporting period or previous years) will be covered and, if so, then with what funds, must be made by the owners of the company.
Formation of loss
A loss may result from:
- excess of expenses over income for financial and economic activities and non-operating operations;
- identification of significant errors of previous years in the reporting year (clause 1, clause 9 of PBU 22/2010);
- changes (clause 16 PBU 1/2008).
The loss received in accounting at the end of the year is reflected by posting to the debit of account 84, the subaccount “Uncovered loss of the current year” and the credit of account 99 “Profits and losses”.
EXAMPLE. HOW IS THE LOSS FOR THE CURRENT YEAR FORMED?
In the reporting year, Passiv LLC received revenue from product sales (excluding VAT) in the amount of RUB 360,000. The cost of products sold was RUB 290,000. The amount of other expenses is RUB 80,000.
In the reporting year, Passive accrued income tax to the budget in the amount of 15,000 rubles.
Passive did not create any reserves or special-purpose funds.
At the end of the year, the financial results report will reflect the following data:
On line 2110 “Revenue” – 360,000 rubles;
On line 2120 “Cost of sales” – (RUB 290,000);
On line 2200 “Profit (loss) from sales” - 70,000 rubles. (RUB 360,000 – RUB 290,000);
On line 2340 “Other expenses” - (RUB 80,000);
On line 2410 “Current income tax” – (RUB 15,000);
On line 2400 “Net profit (loss)” – (RUB 25,000).
The owners of the company did not make decisions about paying off the resulting loss. When the balance sheet is reformed, the following entry will be made:
DEBIT 84 CREDIT 99
- 25,000 rub. – the uncovered loss of the reporting year is written off.
Line 1370 of the Liability balance sheet for the reporting year will reflect a loss in the amount of 25,000 rubles. It is indicated in parentheses.
Ways to write off losses
If a loss is received at the end of the reporting year, the accountant should inform the manager about the need to convene a general meeting of participants (shareholders) so that they can make a decision regarding the resulting loss.
The loss (both previous years and the current year) can be covered by:
- previous years;
- reserve capital (fund);
- targeted contributions from the owners of the company.
If the available sources to repay the uncovered loss of the reporting year are not enough, the uncovered loss is left on the balance sheet.
However, an organization that has suffered a loss at the end of the year should pay special attention to the value of its net assets.
We monitor the value of net assets
When, at the end of the financial year following the second financial year or each subsequent financial year, at the end of which the value of the company’s net assets turned out to be less than its authorized capital, the current legislation requires, and the company is obliged to make a decision to reduce the authorized capital to the value of the net assets (clause 6, Article 35 of the Federal Law of December 26, 1995 No. 208-FZ “On Joint Stock Companies”, paragraph 4 of Article 30 of the Federal Law of February 8, 1998 No. 14-FZ “On Limited Liability Companies”). This must be done no later than six months after the end of the relevant financial year.
Another solution may be the decision to voluntarily liquidate the company.
The operation of reducing the size of the authorized capital to the value of the company's net assets is a legal way to repay the resulting loss. At the same time, the indicator of retained earnings increases.
retained earnings(or a loss that was not covered) at the end of the reporting period is displayed in line 1370 of the balance sheet. It records the result obtained cumulatively over several years.
Is it true that retained earnings are net profits?
Retained earnings are truly net profits that (as the name suggests) were not distributed (divided) among the participants/shareholders of the company. Net profit is considered to be that part of income from sales and non-sales operations that remains after paying taxes.
The decision on how to distribute this income rests solely with the owners. Traditionally, the issue of retained earnings is put on the agenda of the annual meeting of the company's owners. The adopted decision is documented in minutes, which are drawn up following the results of the general meeting of participants/shareholders.
The main ways of spending retained earnings are considered to be in the following directions:
- to pay dividends to participants/shareholders;
- repayment of past losses;
- replenishment (creation) of reserve capital;
- other goals formulated by the owners.
Is retained earnings an asset or a liability?
Retained earnings on the balance sheet are, of course, a liability. The value of this indicator indicates the company’s actual debt to its owners, since ideally this profit should be distributed among the participants and invested in the further development of the business.
In fact, the company cannot dispose of retained earnings without the owners making a decision. The loss reflected in line 1370 is also on the passive side of the balance sheet, only this is a negative value, so the number is placed in parentheses.
Our article will help you better understand balance analysis "How to Read a Balance Sheet (Practical Example)?" .
Retained earnings and uncovered losses - what are they?
As mentioned above, retained earnings are the final income received by the company from its business activities, remaining after the transfer of income taxes and not yet divided (not directed to other purposes) by its owners.
Example 1
Voskhod LLC in 2018 made a profit of 800,000 rubles and paid income tax in the amount of 160,000 rubles. In line 1370 in the balance sheet liability at the end of 2018, Voskhod LLC should reflect 640,000 rubles. This is retained earnings.
The value in line 1370 of the balance sheet may be equal to that indicated in line 2400 of the financial results report if the company had no profits not distributed by the owners at the beginning of the year and no interim dividends were paid during the year.
Our article will help you read balance sheets correctly “Deciphering the lines of the balance sheet (1230, etc.)” .
As for the uncovered loss, this is the excess of the company's expenses over income at the end of the year.
Example 2
In 2018, Parus-Trade LLC received revenue from the provision of services and other non-operating income. Their total amount was 400,000 rubles.
The costs associated with conducting the main activity (transportation) are equal to 380,000 rubles. Other company expenses (not taken into account for tax purposes) amounted to another 58,000 rubles. Profit tax was assessed in the amount of RUB 4,000. Parus-Trade LLC has no reserve capital.
This means that at the end of 2018, after the balance sheet reformation, an entry of 42,000 rubles will appear in line 1370 in parentheses. (400,000 - 380,000 - 4,000 - 58,000).
An uncovered loss occurs when the company receives an actual loss and there are no financing reserves. The value entered in the liability side of the balance sheet in parentheses will reduce the total for section 3 of the balance sheet.
Among the main reasons for receiving an uncovered loss are:
- obtaining an actual negative financial result from the company’s activities due to the excess of costs over income;
- changes in accounting policies that had an impact on the financial condition of the company (this is directly stated in paragraph 16 of PBU 1/2008, approved by order of the Ministry of Finance of Russia dated October 6, 2008 No. 106n);
- errors found in the current year, made in previous years, which affected the financial result (subclause 1, clause 9 of PBU 22/2010, approved by order of the Ministry of Finance of Russia dated June 28, 2010 No. 63n).
Read more about PBU 1/2008 in the material “ PBU 1/2008 “Accounting policies of the organization” (nuances)” .
How retained earnings from previous years are displayed
Retained earnings from previous years are accumulated in account 84. The balance on the credit of this account is transferred to balance sheet line 1370. Typically, there should be no movement in the debit of the account during the year, since profit distribution traditionally occurs at the end of the year after the annual meeting of the company's owners.
Retained earnings of the reporting year
The credit balance at the end of the year according to accounting account 99 is net profit. When reforming the balance sheet, it is written off to accounting account 84 (Dt 99 Kt 84) and constitutes retained earnings at the end of the reporting year.
In order to separate the indicators of retained earnings of the current (reporting) year from last year’s, some accountants allocate separate lines 1372 and 1372 in the balance sheet, which respectively reflect the retained earnings of the reporting period and previous years.
The use of retained earnings is the prerogative of the company's owners. And highlighting this financial indicator for different years in the balance sheet is primarily convenient for them. But it is worth keeping in mind that the retained earnings of the past year cannot be fully distributed without taking into account the company’s previous operating results.
IMPORTANT!It must not be allowed that the value of the company’s net assets, after transferring retained earnings of the reporting year for the payment of dividends, becomes less than the size of the company’s authorized capital even if there is a reserve fund. The caution applies to cases where uncovered losses were recorded in previous years. The decision to cover last year's losses from retained earnings of the reporting year is made exclusively by the owners of the company.
But retained earnings for previous years can be distributed by the participants/shareholders of the company not only at the end of the year, but at any time. The main thing is to hold a thematic meeting of all company owners and approve the appropriate decision.
Retained earnings: calculation formula
According to general accounting data, retained earnings are a company's net profit after taxes that can be distributed to the company's owners.
Based on global financial practice, retained earnings (hereinafter referred to as RR) are calculated using the following formula:
NPk = NPn + PE - Div,
NPk - NP at the end of the reporting year;
NPn - NP at the beginning of the reporting period;
PE - net profit remaining after accrual of income tax;
Div - dividends paid in the reporting year based on the NP of previous years.
If you do not have the NP value, then to calculate the NP you can use the following scheme:
- first calculate profit before tax (to determine it, calculate operating profit, which is defined as the difference between operating income and operating expenses);
- then subtract depreciation and interest costs from operating profit;
- Subtract tax from the resulting profit value.
Indicators for investors
When analyzing the financial condition of a company, investors pay attention to the use of retained earnings. If NP accumulates and is not put into circulation, this state of affairs should seem to suit investors, since they can count on significant dividends.
However, without investment in its activities, the company stops growing, and its income not only does not increase, but may also decrease (due to a drop in competitiveness, high wear and tear of equipment, and for other reasons related to the lack of investment). So a company that accumulates profits but does not invest in its activities cannot be attractive.
At the same time, a company that does not make a profit and does not pay dividends cannot interest investors at all.
The ideal option for investors is a company that invests the funds remaining after paying dividends in its development. Although the owners may decide not to pay dividends and direct the entire volume of NP into circulation.
Results
There is a separate line in the balance sheet to reflect retained earnings (profit remaining after the amount of income tax or net profit has been removed from it). The figure entered into it corresponds to the amount of the entire net profit accumulated over the years of the company’s activity. During the reporting year, the value of retained earnings in accounting relating to this year can be seen in a separate accounting account. Dividends are paid out of net profit.
Vereshchagin S.A.
In order to avoid losses in the financial statements, there must be real profit, and for this you need to work hard. There are no normal options to show in accounting the profitability of an organization given its unhealthy financial situation. All the ways to reduce accounting losses that are often proposed are either normal, correct accounting, or far from harmless violations.
Take, for example, the advice not to take into account direct costs. Nobody explains how this can be done. In accounting, the costs that form the cost are reflected in account 20 “Main production” and form the cost of the finished product. As it is implemented, we write off direct expenses as current period expenses. As a result, direct expenses are taken into account when calculating the financial result only if there is income. Therefore, not taking into account direct expenses when there is no revenue is not an option to reduce losses. This is normal, correct accounting. And when there is revenue, this is a violation of accounting rules.
Another example of a harmless way to reduce losses, which, by the way, is one of the first things that comes to mind for many. Indeed, why not postpone writing off some impressive indirect expenses to cost and reflect them on one of the favorite accounts of the Russian accountant - account 97 “Deferred expenses”? Of course, it is possible to reflect it. But what will this give you? Everything that is listed on account 97 must be distributed in the reporting between the balance sheet and the profit and loss account. Any amount in account 97 is either an asset of yours that is used to generate income, or an expense that reduces income.
Question. And if I keep expenses as accounts receivable for some time, until our financial situation improves, what will I violate?
Firstly, we must not forget about the principle of accounting for expenses: they must be recognized when they arise, and not when you want. Secondly, by disguising expenses as assets, you violate the requirement of timely reflection of the facts of economic activity, which contradicts the requirement of prudence enshrined in paragraph 6 of PBU 1/2008. Thirdly, you distort your financial statements and mislead its users. After all, it may also happen that the revenue will never appear at all. What to do then? If all expenses are listed as receivable, at some point it will be revealed that your, at first glance, decent organization is essentially bankrupt. So this is not an option.
The next pseudo-option: “What if advances received are taken into account not as accounts payable, but as deferred income?” And here I also have to disappoint my respected colleagues. This is a temporary solution, which will again lead to distortion of the company’s reporting and will not help in any way. You should not “draw” figures in your financial statements that differ from your real financial indicators. This is too straightforward falsification of reporting, which threatens not only an administrative fine, but also a possible loss of reputation both for the company and for you as an accountant.
Some believe that the situation can be saved by the help of a participant, no matter what: ridding the organization of its debt to itself or contributing to its property. Such a contribution can be not only money, but also things, as well as property rights. Well, let's look at this option.
I’ll say right away that investing in property will not reduce the loss. But the balance sheet can become beautiful as net assets increase. Therefore, this is often exactly what happens: hard times have come, and it is no longer the organization that feeds the owner, but on the contrary, he feeds it, if, of course, he can. True, this is often done not so much because of possible problems with the tax authorities, but to obtain a loan or for some other business purposes. However, as far as taxes are concerned, such a contribution to the company's assets will not help reduce the tax loss. After all, it is not taken into account in income, because it always increases net assets. To say that such a contribution is not made for the purpose of increasing net assets, and to take it into account in income, is completely stupid. So I don’t see much point in this option.
With the forgiveness of an organization’s debt by a participant, everything looks like this. In accounting, the amount of the debt forgiven is included in other income, and the loss on the income statement is reduced. For tax purposes, forgiven debts will also increase income. After all, the company writes off its accounts payable. So for those who want to reduce accounting and tax losses, such good will of the participant is not a bad option at all.
So we've moved on to tax losses. Here, in my opinion, there are completely legal ways to reduce them.
The first way is to refuse to create any tax reserves and to refuse to use premium depreciation. This may require a change or addition to accounting policies, but this is usually not a problem. True, the owner may not be very happy with this option. Because he pays taxes that he might not otherwise pay on amounts that could reduce his taxable income. Therefore, such options need to be implemented after first agreeing with management.
The second way is to calculate taxes based on the principle of full agreement with the tax authorities. That is, do not take into account in the income tax base any expenses that regulatory authorities prohibit from taking into account. And vice versa - include in income everything they require.
Let me give you an example. The organization received bonus products for a certain volume of purchases. It's clear that she doesn't consider them free. The bonus product was received only due to the fact that certain conditions for the volume of purchases for which money was paid were met. And property is considered received free of charge only if, with its appearance, the recipient does not have a reciprocal obligation to transfer the property, perform work or provide services.
In such a situation, controllers naturally demand that tax be paid. The organization, if it were in a different position, would have argued, but, sitting at a loss, decided to pay income tax on the cost of the bonus product received. The balance sheet, of course, remains unprofitable, because no income needs to be shown in accounting. But nevertheless, profit for tax purposes will appear and tax on it will go to the budget. And naturally, the inspection will be pleased. Although the accountant will have to reflect differences arising from differences between accounting and tax accounting. In our example, a permanent tax liability will be accrued.
There is also a way to get rid of tax losses altogether - to transfer part of the expenses of the current year to the next year.
I want to immediately warn you that this game should not be played to reduce losses. That is, when, regardless of whether you take into account expenses this year or not, the income tax base will be zero. Article 54 of the Tax Code of the Russian Federation allows reducing the tax base of the current period for expenses of previous years only if failure to take into account these expenses led in the past to excessive payment of tax. But since the loss is not eliminated at all, but only reduced, your income tax will be zero. And since you don’t pay anything, then you cannot apply this rule of Article 54. In this case, expenses can only be taken into account in the periods in which they are incurred, and thus they will increase the losses of previous years. This is exactly what the Ministry of Finance has repeatedly explained.
But let’s say you don’t take into account some expenses and as a result, profit appears on your tax return instead of a loss. It is clear that accountants do this in an effort to protect themselves from inspectors’ demands to explain the cause of losses and from possible on-site inspections.
But it was not there! Your gift to the budget can easily turn against you. The tax inspector will insist that expenses that were incurred and supported by documents this year must be taken into account this year. And in general, he will be right, since Chapter 25 does not give the taxpayer the right to choose the moment of accounting for expenses.
Question. Sergei Alexandrovich, forgive me, but this, as they say, is a double-edged sword. After all, tax authorities themselves consider an expense to be economically unjustified if the taxpayer did not receive income or incurred a loss in a certain tax period. I thought, on the contrary, it would be good to hold back expenses a little in such a situation.
Indeed, there is such a problem. Yes, both the Federal Tax Service and the Ministry of Finance unanimously explain that losses and lack of income are not a reason for not accounting for expenses. However, local tax inspectors become very nervous if they see that an unprofitable organization continues to spend money. And if they find a clue to challenge such expenses as economically unjustified, that’s it! Consider the dispute guaranteed. This can be seen in many court decisions. It is clear that the taxpayer will win such a dispute, because the presence of a loss or lack of income does not prevent the accounting of expenses.
But whether it will be possible to defend the transfer of documented and justified expenses of the current year to future periods is a big question. After all, inspectors, when it is beneficial for them, remember the explanations of their superior department. So, not accounting for expenses on time is not an option. Today you will not take into account expenses so as not to increase losses, and tomorrow, when checking, tax authorities will easily exclude expenses taken into account later than necessary. And they will be right, because the Tax Code prescribes the procedure for accounting for expenses.
And finally, the last way. Let's say you have a loss from previous years. If you fully take it into account in the current year, your income tax amount will be reset to zero. But is it possible to show the loss of previous years only partially, so as not to attract the attention of tax authorities? Conventionally, if the loss for 2010 was 100 rubles, in 2011 we will show not the entire 100 rubles of the loss, but only 50.
The Tax Code of the Russian Federation directly permits this. You have the right to reduce the tax base of the current reporting period by the entire amount of the resulting loss or by part of this amount, that is, transfer the loss to the future. We will discuss in more detail how to do this correctly.
This line reflects information about the organization’s net profit (loss) received for the reporting period and the similar period of the previous year (clause 23 of PBU 4/99).
When preparing interim financial statements the amount of net (undistributed) profit (net (uncovered) loss) of the reporting period is determined on the basis of analytical accounting data for account 99 “Profits and losses” (Instructions for using the Chart of Accounts). In fact, this is the balance of account 99 at the end of the reporting period. Net profit is reflected in the credit of account 99, and net loss is reflected in the debit of account 99 (clauses 79, 83 of the Regulations on Accounting and Financial Reporting, Instructions for the Application of the Chart of Accounts).
Note that when determining the amount of net profit (loss) in accounting, in the general case, indicators of conditional income tax expense (income) and permanent tax liabilities (assets) are used.
At the end of the reporting year, when preparing annual financial statements account 99 is closed. In this case, by the final entry of December, the amount of net profit (loss) of the reporting year is written off from account 99 to the credit (debit) of account 84 “Retained earnings (uncovered loss)” (Instructions for using the Chart of Accounts).
The resulting loss is shown in the Income Statement in parentheses.
When preparing interim reporting:
Line 2400 “Net profit (loss)” = Balance of account 99 of the Statement of financial results
When preparing annual reports:
Line 2400 “Net profit (loss)” of the Income Statement = Turnover on account 99 in correspondence with account 84
The amount of net profit according to accounting data must coincide with the amount of net profit determined by calculation based on the indicators of the Financial Results Report.
In the Statement of Financial Results, instead of the conditional income tax expense (income), indicators of the current income tax, the amount of changes in deferred tax assets and deferred tax liabilities appear.
An increase (decrease) in deferred tax assets and deferred tax liabilities forms the value of the current income tax.
For the purpose of determining the amount of net profit (loss) according to the Statement of Financial Results, the impact of deferred tax assets and deferred tax liabilities must be excluded. Because current income taxes are deducted from accounting earnings, increases in deferred tax assets and decreases in deferred tax liabilities must be added to the Earnings (Loss) Before Tax line item, and decreases in deferred tax assets and increases in deferred tax liabilities must be subtracted from it. If the result is a negative value (net loss), then it is shown on line 2400 “Net profit (loss)” in parentheses.
If we put all of the above into formulas, we get:
Let us express UR(UD), PNO and PNA through TN, ONA and ONO from formula (1):
When substituting the value of the current income tax into formula (4) and opening the brackets, it is clearly seen that changes in IT and IT, as identical terms with different signs, do not participate in the calculation of net profit (loss):
| PP(CHU) = BP(-BU) - (UR(-UD) + PNO - PNA + UvONA(-UmONA) - UvONA(+UmONO)) + UvONA(-UmONA) - UvONO(+UmONO) = BP(- BU) - UR(+UD) - PNO + PNA, | (5) |
where TN is the current income tax;
UR - conditional income tax expense;
UD - conditional income for income tax;
PNO - permanent tax obligations;
PNA - permanent tax assets;
UVONA - increase in deferred tax assets;
UMONA - reduction of deferred tax assets;
UvONO - increase in deferred tax liabilities;
UMONO - reduction of deferred tax liabilities;
PE - net profit;
PL - net loss;
BP - accounting profit;
BU - accounting loss.
Line 2400 “Net profit (loss)” of the Income Statement = Line 2300 “Profit (loss) before tax” - Line 2410 “Current income tax” +/- Line 2430 “Change in deferred tax liabilities +/- 2450 “Change in deferred tax liabilities” tax assets" - Line 2460 "Other"
Indicator of line 2400 “Net profit (loss)” for the same reporting period of the previous year in the general case (if there is no need for retrospective recalculation of comparative reporting indicators due to changes in accounting policies or correction in the reporting year of significant errors of previous years identified after approval of the financial statements for the year errors) is transferred from the Income Statement for that reporting period of the previous year.
Example of filling line 2400"Net income (loss)"
Indicators for account 99 in terms of net profit in accounting:
Indicators of the Financial Results Report for 2014
thousand roubles.
Solution
The organization's net profit for 2014, according to accounting data, is 9,723 thousand rubles.
The amount of net profit according to the Financial Results Report is:
for 2014 - 9723 thousand rubles. (11,415 thousand rubles - 1201 thousand rubles - 382 thousand rubles + 26 thousand rubles - 135 thousand rubles);
for 2013 - 14,780 thousand rubles. (RUB 16,176 thousand - RUB 1,426 thousand + RUB 18 thousand + RUB 27 thousand - RUB 15 thousand).
A fragment of the Income Statement in Example 6.18 will look like this.
